February 23, 2017 by Canadian Underwriter
PERILS, the independent Zurich-based organization that provides industry-wide catastrophe insurance data, has put the initial loss estimate for extra-tropical cyclone Egon at 212 million euros.
The low pressure system associated with Egon developed as a secondary low from a large depression named Dieter and travelled rapidly in an easterly direction over northern France and Germany on Jan. 12 and 13, PERILS noted in a press release issued on Thursday. High winds, which occurred to the south of the system, predominately affected northern and central France, as well as central and southern Germany. The cold front associated with Egon also resulted in heavy rain and snowfall, PERILS reported.
The organization’s initial estimate of the insured property market loss for Egon is 212 million euros. While the majority of the losses occurred in France and Germany, impacts were also felt in Austria, Switzerland and the Benelux states, albeit to a much lesser extent, PERILS said, adding that its market loss estimate is based on ultimate gross loss data as reported by primary insurance companies.
“Egon is the first European windstorm to exceed our reporting threshold of 200 [million euros] for this peril since Mike-Niklas in March 2015,” said Luzi Hitz, CEO of PERILS, in the release. “While the market loss from Egon is by no means dramatic, it nevertheless provides new data points, which can be compared with past events and put into relation with the market sums insured data, which we also provide. As such, Egon will serve as another piece of knowledge with which to calibrate the industry’s view of European extra-tropical cyclone risk to reality.”
In line with the PERILS reporting schedule, an updated estimate of the Egon market loss will be made available on April 12, three months after the event start date.
Under the alliance, PERILS will make available industry loss data for any natural catastrophe event in Canada causing a market loss of $300 million or more, such as earthquakes, floods, storms, wildfires and volcanic eruptions.
The loss data, which will be compiled by CatIQ, will be made available by Canadian province and by the following lines of business: private property, commercial property and motor hull (auto). Loss reporting for qualifying Canadian events will follow the standard PERILS reporting schedule – the first loss report made available six weeks after the event, followed by a minimum of three updates three, six and 12 months after the event.
Including Canada, the PERILS Industry Loss Index Service now covers 16 territories. The other 15 territories are: Australia, Austria, Belgium, Denmark, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Sweden, Switzerland, Turkey and the United Kingdom.